How Can You Repair Your Thin Credit Report?

Your credit file is probably on the thin side if you’re young, have not yet taken out credit for a while, or are new to Canada. Your credit score can be worse than you’d want as a result.
Lenders seek proof that you are a trustworthy borrower who will make your payments on schedule. Each lender has its own set of requirements for granting loan applications. In general, they’ll take into account both your application information and your credit history. To raise your score and obtain the best offers, you must build up your credit record. Here are five easy adjustments that you can make right away.

  1. Have a Cosigner

Having a cosigner is an additional approach to improving your credit score. Your cosigner guarantees your payment to the credit card business in the event that you are unable to. However, cosigners often do not receive their own cards, or card bills, or obtain access to the account.

Some credit card companies do not accept cosigners. However, in the event they do, they often decide whether to accept you for the type of credit by looking at the cosigner’s credit score and credit history. If the lender authorizes the loan, at most one credit agency will normally get a report on the loan’s payment history, whether it is good or bad. 

  1. Apply for a Credit-Builder Loan

In order to assist applicants to establish their credit records, credit-builder loans are specifically for that purpose. Smaller community banking institutions and credit unions frequently offer these loans. Most of the time, the lender holds the cash you borrow in a savings account. The money is provided to you once the loan has been fully repaid.

If you do decide to pursue a credit-builder loan, seek one with a term of no more than 24 months. Additionally, be certain that the lender will inform one of the three largest national credit agencies about your payment activities. If you need a credit-builder loan you can easily apply for one at My Canada Payday.

  1. Report and Challenge Any Errors in Credit Reports

Check your credit reports for any inaccuracies to help keep your credit history as accurate as possible. For instance, a credit card account can unintentionally be advertised as being closed.

The Consumer Financial Protection Bureau (CFPB) offers guidelines for contesting inaccuracies on your credit reports, which may be useful if something doesn’t seem right.

  1. Get a Secured Credit Card 

Applying for a secured credit card is one technique to build up a thin credit file. In order to create an account and qualify for a secured credit card, you often need to make a deposit with the credit card company. This is known as a security deposit.

For instance, it is comparable to the security deposit needed when renting an apartment. Typically, the deposit is refundable, but the regulations regarding when and how money is repaid vary depending on the credit card company. However, obtaining a secured credit card requires more than a cash payment. Your application must also be approved by the issuer.

  1. Run a Credit Report Check

Ensure the information getting reported to the credit bureaus is accurate before you start your credit journey. Check your credit reports from Experian, TransUnion, and Equifax, on a regular basis. Verify that the information being reported about your new credit is accurate by looking for any errors or anomalies. If you notice any problems, you should file a dispute with the credit bureau.


You can have a thin credit history if you’re new to credit, typically pay with cash, or just haven’t used a credit card in a while. That indicates that your credit reports either reflect few or no credit accounts for you.

In some situations, it may be challenging to calculate your credit score if your credit history is sparse. Lenders might not be prepared to provide you with credit if they can’t view your credit score. You can use these strategies to improve your credit score, opening the door to more access to loans, credit cards, and other types of credit.